KUALA LUMPUR: Malaysian palm oil futures reversed two days of declines to gain on Wednesday as traders were keen to lock in hedges for physical crude palm oil (CPO) at these levels.
The palm oil contract for March on the Bursa Malaysia Derivatives Exchange fell to a near one-month low of 2,368 before ending the trading day 1.3 per cent higher at 2,413 ringgit ($551.54) per tonne.
"CPO is well held at current prices," said a trader from Kuala Lumpur, explaining that traders are hedging on that.
"It's going to be difficult for it (spot CPO prices) to come down, it's hanging around the 2,250 ringgit level."
Traded volume stood at 43,908 lots of 25 tonnes each.
Palm has fallen by nearly 3 per cent so far since the start of the year as export demand for the tropical oil remains lacklustre and traders remain cautious over shaky equity markets and plunging crude oil prices.
The US March soyoil contract gained 0.79 per cent, while the May soybean oil contract on the Dalian Commodity Exchange was slightly down by 0.1 per cent.